MDLY - Earnings call transcript Q1 2018

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Operator

Welcome and thank you for joining Medley Management Incorporated First Quarter Conference Call. Today’s call is being recorded. Please note that this call is the property of Medley Management Incorporated and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone numbers and PIN provided in the company’s earnings press release. At this time, all participants are in a listen-only mode, but will be prompted for a question-and-answer session following the prepared remarks.

is CEO today CFO. Rick call the Brook and Taube, Allorto, On

the could that regarding historical constitute the reason from update would call differ The are law. a to customary to in its undertake a attention results in company forward-looking recent company’s may begins, SEC. may forward-looking than such Safe any with statement other risks does press to disclosure most filings by Before and disclosed the materially subject your note include like expressed forward-looking for the call projections, today’s forward-looking any Please those information by the statements forward-looking those as call fact company’s not required statements to Harbor and company of company’s conference the Any release actual which statement. statement the statements as unless uncertainties.

will including income under certain call, these conference to non-GAAP refer as this net a core and pre-tax measures, as the financial The management, per income the company performance, Principles. During These substitute measure share. uses or assets earning measures core a company fee measures accordance in isolation a be Accounting not measure from as of of for in prepared should Generally operating Accepted not with liquidity. considered net

XX-K Please measures most to would and the not definitions the Investor Relations Mr. website the companies. Management these presentation, to its refer call titled measures quarter Taube. investor the over and is for other company be these may turn by at Medley now Form which addition, to earnings measures available company’s comparable In posted comparable The to in reconciliations of has used like first measures. www.mdly.com. I GAAP section similarly directly XXXX to Incorporated of release

Brook Taube

quarter the share we core operator the ended income This per dividend on $X.XX. May XX Directors share welcome quarter On for and approved March conference a shareholders be Medley’s net was Board X everyone XX. the results paid first to Thank for of on our morning, XXXX June the announced per of you, and quarter $X.XX call. will of to May XX, that record

I disciplines we our the our accounts Adjusted the to the fee and quarter remain the important capabilities. products make closings, certain was and our on that building post structured $X across we grow vertical. will with and alternative capabilities continue platform. as a managed continue asset combination Overall, of business be report The am quarter AUM private the our various most well investment earning we that $X.X separately as AUM look the we at to In on pleased diversify management to like to as finance now our steps speak I’d at investment highlight the billion long-dated around have recent about to progress that further AUM, capital billion initiatives particular, permanent the and On I for platform. moment. development expansion in billion in $X.X number of vehicles, the ended total funds end. focused quarter and is

the on and $XX over institutional continue retail million from strategy to and in of end, assets both We ahead. see demand and quarters we look following to for the investors quarter added side growth continued forward fee-earning the institutional we

opportunities and strides pipeline our initiative. our strong In we addition, continue tactical is and to make

transaction. instrumental As was this week, we timber $X.X Medley in earlier billion announced a

our Medley, deal and ability with of a as institutional on with relationships $XXX participated strategies. our Specifically, this operating our both It continued investors opportunities our to and opportunity. opportunity platform’s direct was partners. support flow this broader the At expanding over partnered the provide developed in and million tactical of as high-quality to and and institutional corporate well capital remain team partnerships – generate Medley is lending by credit unique sign strong focused we to we

strong experienced have origination very the in and remains year-over-year growth We of pipeline active. in our this business part

financials for and We yield do to retail for on private solutions to in both the quarter. the turn the Rick for which target would give will see on strong next later early you institutional the business. to managed I and of now institutional we this or on side We an have fund over Allorto to of senior year our loans pipeline demand call launching update remained XXXX. accounts focused like continue demand the a the

Rick Allorto

Thank Brook. you,

funds. XX, revenues to an for were increase the in Total the increase to three and were our fees were to ended of of compared expenses in first and consolidated expenses management other This professional primarily $XX.X of $X.X million same for fees. million $XX.X revenues Total the $XX.X XXXX. quarter for follows. months million million $X.X of was consisted million XXXX compared fees of XXXX. compensation, period operations due from as results severance-related million and March Our $XX Revenues

our $X.X reversal was net That for net in there will income ended $XX in due over period million now Pre-tax in Brook. was EBITDA expenses March months financial core Core to million period Core compared by the I the to quarter XX, $X decreased first increase in million million of in $X.XX quarter. was XXXX. MCC. concludes million $X.X per Additionally, $X.X $X.X of versus XXXX. March same a Other primarily to $X.X to XXXX turn share the million for This back my same compared performance net during compared for income million of was the in the $X.XX three call to losses $X.X same fee to review. compensation investment period was net, XXXX XXXX. unrealized million of other XXXX. shares from expense the the

Brook Taube

thank like the to today. continued would everyone and for thank Rick joining Thanks, all us you We for support.

years initiatives progress and do we ahead. for questions. forward can and call Our platform We the further to now recent open and team hard the work at existing quarters on remains look our in

Operator

Instructions] from our line first Craig [Operator question of Credit And the Suisse. from Siegenthaler comes

Your line is now open.

Steve Castano

Craig. in This for is Good Steve filling Castano morning.

fund, question can So, your you and key first meetings interval conversations with on some feedback your early just from distributors? share the

Brook Taube

Thanks, Steve. Brook. This is

in of the We stages to work as with the channel. continue mentioned the fund we interval early we and are

agreements selling expect and important for terms signing the in the of few will STRF. on and are that will next look reporting of which sales to the process the We be quarters in quarters inflection we in each coming continue – and progress in forward quarters

Steve Castano

players my Thanks comes especially distribution? when Brook. as scale, to it follow-up, are And seeing just the to more with advantages you

Brook Taube

Sure.

appetite we the consolidation as there within of both number in of the platforms diversification have our at and side, a well product and institutional watch it as the I think industry it’s clearly scale of being that seen behavior on a offering. on for growing is fronts LPs

Our can dialogue with what capabilities institutional provide. investors you is around

both product firm as well scale. it on see as overall side we So,

in this to past as about is would say talked the greater to of have requiring side process continue. of We greater as expect the the I and capital well sort of from allocation scale and going that’s we investor thinking and

Steve Castano

Perfect. me. Thanks That’s for Brook. all

Brook Taube

Steve. Thanks,

Operator

Casey from Point. next And the line question Compass comes of Alexander from our

Your line is open. now

Casey Alexander

one that is give in us characterizes component unrealized kind what it still $X shares that to unaccounted. the color just loss else MCC Yes, aren’t million other? good on appreciate some of $X is morning. of is there there expenses, of million but Can because I the other the you

Brook Taube

Casey yes MCC, that is share Casey. million is $X.X related of lion’s the the detail, to

Casey Alexander

employ company bit Okay. strategic might you more of initiatives Can nature a the and little for scale business as of the advantage the to discuss given that? the need take

Brook Taube

and may organic Well, scale we I is in a you comment the have to two I is in one mentioned have at, ways this Casey give growth. will high past, the looked there level get

we ways that, as like We looking credit forward the gaining fund, we to Again, or the in are business inflection in looking a will also our opportunities are developing positive early with and in that’s retail and to the that stages tactical it The then growth, inflects. Clearly, actually well see both and structured meet are the just to expand structured interval interest institutionally ramp it expect credit to we slow side. the pleased that tends channel. are then business. be at is these on one as

scale is products. second The

are saying is the increasingly about looking side institutional our larger we business for of what allocations. LPs think I

in the where and in collect increments. a become past or We grow come So, will the and would places, new that capital business is you signed as smaller inorganic The think challenging might institutional more that in we relationships. or lumpy accounts more complicated smaller distribution. up bit two funds managed little

product our investment in capital ways and folks with asset have have said past, do to – to capabilities channels, those the to opportunities and would at the with As ways inorganic overall looked have at looking also who firm. we the us classes expand would help be expand working those working at I set

the that done have past. in We

answered expect to with to question? expect answer it, Casey. my We that’s opportunity think to that we be and the at those execute. challenging Does and you fit look capital, Well, break But right from human Casey. hope the us. those I can that the reasonably something – I high can as find level to right comment Maybe that continue and lost when is we

Operator

remarks. to I at any the this Brook And to Instructions] questions. over like no further back I for would showing am turn [Operator closing time, call Taube

Brook Taube

for all you today. Thank joining

reporting to in behalf to in hard good the and continue progress We forward forward team, August. look quarters with of look summer ahead. wish the on work at we you everyone again a And and speaking

Operator

in Ladies program. for and today’s conclude gentlemen, does your you participation conference. thank the This

day. Everyone great disconnect. have all may You a

Medley Management (MDLM) 16 May 182018 Q1 Earnings call transcript